FINANCIAL ACCOUNTS

KTDA directors meet ahead of final bonus pay declaration

Farmers are set to receive the pay early October.

In Summary
  • KTDA released Sh5.5 billion for the first payment (mini-bonus), for the half year ended December 2022.
  • During the year 2022, the total volume of Kenyan tea sold at the auction was higher at 410.26 million kilos compared to 388.28 million kilos in 2021.
A farmer picks tea leaves in Othaya, Nyeri county
A farmer picks tea leaves in Othaya, Nyeri county
Image: FILE/

Directors from 54 Kenya Tea Development Agency-affiliated factories are meeting early next month to review and approve the audited financial accounts ahead of the declaration of the second and final bonus payout.

At least 600,000 small-scale farmers who supply their green leaves to the factories in various regions across the country will receive the pay to be released beginning in October.

The agency announced in June that the final payment would be made "within the first two weeks" of the month.

A notice dated June 9 stated that this had arrived following a meeting with the farmers.

Last year, former Agriculture Cabinet Secretary Peter Munya reversed the traditional pay pattern of November announcing that bonuses should be paid in July.

"The decision is based on the farmers' feedback during the factories' Annual General Meeting (AGM) and other engagements as well as feedback to various factories, leaders and other stakeholders," the notice read.

The notice further states that the tea farmers are to be paid the bonus together with the September 2023 Greenleaf payment.

KTDA released Sh5.5 billion for the first payment (mini-bonus), for the half year ended December 2022.

KTDA disbursed Sh37.1 billion as the final payment in 2022 with farmers receiving between Sh29 and 48 per total kilos delivered.

Rates paid by factories on bonuses differ based on income for the year, quality of leaf delivered, costs of production as well and the average price of tea that the factory fetched at the market.

Tea production for the month of December 2022 was enhanced by 2.79 million kilos from 52.52 billion kilos recorded in the same month of 2021 to 55.32 million kilos.

During the year 2022, the total volume of Kenyan tea sold at the auction was higher at 410.26 million kilos compared to 388.28 million kilos in 2021 but lower than 415.98 million kilos in 2020.

However, auction prices for Kenya tea were higher at an average of USD 2.49 per kilo (Sh348) compared to USD 2.10 (Sh294) for the year 2021 and USD2.01 (Sh281) in 2020.

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